Investors Sue NHI Over Nursing Home Sales Fraud

By Eric Hornbeck

Law360, New York (February 04, 2011, 2:45 PM ET) -- Real estate investment trust National Health Investors Inc. has been hit with a shareholder derivative suit alleging that its board members manipulated a nonprofit foundation for their own benefit.

NHI, which primarily invests in for-profit nursing homes and other long-term care facilities, handpicked members of nonprofit Care Foundation of America Inc.'s board to facilitate their nursing home sales scheme, according to the complaint filed Thursday by Paul Kent Bramlett in the U.S. District Court for the Middle District of Tennessee.